At bustling global trade ports where mountains of shipping containers await processing, the complexity and inefficiency of product classification creates an invisible barrier to smooth commerce. GS1 global standards are emerging as a potential solution to break down these barriers and enable freer movement of goods worldwide.
Challenges in Traditional Product Classification
Current product classification methods face multiple obstacles. The process often proves unnecessarily complex, requiring significant time and resources. Compounding the problem, different countries and regions maintain varying classification standards and interpretations, leading to inconsistent results and reduced efficiency.
The lack of universal standards frequently generates disputes during classification, creating friction in international trade flows. These systemic issues underscore the need for a more streamlined approach.
GS1's Standardized Approach
GS1 (Global Standards One) leverages its expertise in global product identification to deliver precise, transparent, and efficient classification solutions. The organization's framework emphasizes standardization, digitization, and unification through three key components:
- Global Trade Item Numbers (GTIN): Unique product identifiers that eliminate classification ambiguity
- Global Product Classification (GPC): Standardized coding system for categorizing products
- Global Data Synchronization Network (GDSN): Real-time data sharing platform for product information
This multi-layered system addresses classification needs at various levels:
- Global: GTIN enables worldwide product identification
- Industry-specific: Tailored codes for sectors like chemicals (CAS), automotive (VIN), and medical devices (UDI)
- Enterprise: SKU codes for internal inventory management
China's GTIN-HS Code Integration
China has emerged as a pioneer in classification standardization by integrating GS1's GTIN with Harmonized System (HS) customs codes. This initiative involves:
- Establishing reliable GTIN data sources
- Developing industry-specific datasets
- Creating GTIN-HS code mapping mechanisms
- Implementing structured decision-making processes
The integration requires consensus through standardized product lists, GS1 declarations verifying GTIN authenticity, and using GTIN as primary identifiers. This approach facilitates faster customs clearance by transitioning from product declarations to verified GS1 statements.
Pilot Programs Show Promise
Early trials demonstrate the system's potential. In China's infant formula sector, matching 1,000 product variations with 122 GTINs enabled automatic HS code alignment, significantly accelerating customs processing.
Current mapping achievements include:
- GPC BRICK-HS4 coverage of 71.88% product categories (2,830 items)
- Alignment with 42.2% of HS 4-digit codes (515 items)
- Matching with 71% of HS chapters (69 sections)
Sector-specific GTIN-HS10 databases are now being developed for products like wine and diapers.
Future Development
GS1 plans continued collaboration with customs authorities and businesses worldwide to advance classification standards. Long-term objectives include:
- Enhancing technical capabilities
- Contributing to international standard development
- Expanding adoption through global partnerships
This coordinated effort aims to optimize global trade efficiency through standardized product classification systems.